What does coupon rate mean for bonds


Response to the following problem:

Your company currently has $1000 par, 6% coupon bonds with ten years to maturity and a price of $1078. If you want to issue new ten-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly 6 months.

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Financial Accounting: What does coupon rate mean for bonds
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